"Domestic Healthcare Startups Have High Future Value... But Market Stagnated Last Year"

Asan Nanum Foundation Publishes Report on 'Digital Healthcare Scale-up Tracking Study'

[Asia Economy Reporter Kim Cheol-hyun] Although the future value of domestic healthcare startups is high, the market has been stagnant since last year, according to an assessment.

Asan Nanum Foundation (Chairman Han Jeong-hwa) announced on the 24th that it has published a report titled "Digital Healthcare Scale-up Tracking Study" containing these findings. This study was conducted to identify what is needed for domestic healthcare startups to grow, with the Aspec Future Technology Management Institute participating jointly.

The report explained that amid the global investment market's focus on healthcare companies due to COVID-19, domestic startups also recorded a healthcare company ratio of over 10% in cumulative investments exceeding 1 billion KRW, reflecting a high evaluation of future value. However, despite increased investments and improved technological competitiveness of domestic companies, the Korean healthcare market has entered a stagnation phase in the 2020s due to regulations prohibiting telemedicine and a tendency to focus on products.

Additionally, while the global innovation ecosystem is transitioning to scale-up (business expansion) to create high-growth jobs in startups, Korea's corporate support policies are excessively concentrated on startups. Accordingly, the study analyzed the current status of scale-up in the domestic healthcare sector and examined the business models of 15 digital healthcare companies to derive implications necessary for national policy.

The report identified strategies needed for domestic startups going forward as ▲securing an initial effective market through policy linkage ▲expanding test beds utilizing the pandemic ▲improving the medical fee system, and scale-up strategies as ▲securing overseas markets through competitive systems ▲building cooperative networks among companies.

Chairman Han Jeong-hwa said, "I hope this research report will illuminate the current status and future direction of the domestic digital healthcare industry and help find future directions through analysis of growing companies' business models. Asan Nanum Foundation will also continue to consider and strive so that domestic startups can achieve solid scale-up by participating in the changes and development of the digital healthcare market."